To make ends meet, many governments are
turning to public-private partnerships (PPPs). PPPs
allow the public sector to leverage private funding
and expertise to more rapidly plan, launch and
deliver infrastructure projects. In exchange, private-sector partners are given long-term maintenance
and operation contracts that turn a pro;t.

“On the face of it, PPPs are a great project model
to ;ll in the funding gaps these countries face,”
says Andy North, a former senior vice president of
strategic development and management in Kuala
Lumpur, Malaysia, for AECOM, a global design,
engineering and construction ;rm.

;e global gaps are staggering. According toMcKinsey & Co., an estimated US$57 trillion will beneeded to ;nance infrastructure development aroundthe world through 2030, with much of that invest-ment needed in developing countries. Latin Americaand the Caribbean, for example, will need more thanUS$700 billion to double power-generation capac-ity by 2030, according to the U.S. Energy Informa-tion Administration. And sub-Saharan Africa needsUS$93 billion per year to address its infrastructureshortfall, according to ;e World Bank.

Given these urgent needs, PPP projects holdhuge potential. But governments must clarify proj-ect roles, risks and ROI before private organizationswill be prepared to foot the bill.nfrastructure projects help nationsbuild a better future. Emergingeconomies need upgrades to roads,railways, energy grids and broadbandnetworks in order to sustaindomestic growth. But these countriesface a particular conundrum: howto build highways, power plants andports that will stimulate economicdevelopment when public funds arein short supply.